Buyers in new areas not getting home loans

BANGALORE: `New Bangaloreans' -- residents of old CMCs, TMC and village panchayats now under BBMP limits -- may be regretting their inclusion under the big city banner. Internal administrative slip-ups are putting them in a quandary.
After a long impasse over registration of properties, which has now been solved, the vexed khata issue is hindering the home loan process and has left property buyers in the lurch.
Simply put, banks are refusing to process loan applications of those who are unable to produce khata certificate of properties they plan to buy. Even the recent communication from the government that khatas issued by former urban local bodies will suffice for registration has not helped.
"I am trying to sell my apartment in Uday Nagar, Old Madras Road. It comes under the former Mahadevapura CMC. My buyer approached many nationalized banks for a home loan, for which khata certificate is a mandatory document. The government has stopped issuing new khatas. Even changing the khata from seller to buyer is not being done, citing administrative issues. In the tussle between the banks and government, middle-class people -- planning to buy a home for a good deal in these times of recession -- are suffering," said chartered accountanr Avaneesh Shetty.
According to the inspector general of registration and commissioner of stamps, K R Niranjan, the government communication has been sent to all sub-registrars but not the banks. "If banks ask for copies, we will send it across. The khata issue has caused a major problem in property transactions and only after the recent order, registration is picking up. I will make arrangements to provide copies of the order in my office," he said.
To facilitate sale of properties in former urban local bodies around the city, the government on August 14 suggested alternative documents for registration -- copies of khata and assessment extracts issued by CMCs, TMC or village panchayats under whose jurisdiction the buildings/land belonged; copies of property tax application and tax-paid receipt under BBMP's Self-Assessment Scheme. For sale of apartments, a copy of the registered sale deed of the first transaction is required.